We focus on skills needed to make us rich.
But, do we pay enough attention to managing the Cash Flow that supports our life styles?
"Being Disciplined Helps You Stay Rich!"
Paul Sullivan wrote an article in the NY Times - "Being Disciplined Helps Athletes and Entrepreneurs Stay Rich".
He brings to light that the wealth we are earning needs to sustain our whole life; not such an easy task.
And with many of us working 24/7 we can easily lose focus in managing the daily cash flows that slips through our fingers!
Joe McLean, Managing Partner of Intersect Capital in San Ramon, California has a great proverb.
“With great abundance comes less discipline.”
You may be surprised to learn ...
that’s where Insurance Products can come in to help you create the liquidity you need to meet the unexpected and secure some financial guarantees that life's volatility can't always provide.
I specialize only in Insurance, working with you and your Financial Advisor exploring how “select Insurance Products” can help you create a more balance financial plan and provide the liquidity you need to meet the unexpected.
Simultaneously finding that Financial Advisor who teaches you “money basics” is paramount to keeping your wealth.
And even a well intended laid out financial plan, can with little warning, lay havoc to your immediate cash flow needs.
Three Cash Flow Benefits that Insurance Products can Provide.
I -Take control of your liquidity and become your own banker with a Participating Whole Life Insurance Policy.
Many people are not aware of the concept: "Cash Value of Whole Life" giving you the opportunity to become your own banker.
This particular Whole Life allows the cash within a policy to grow tax free.
With this type of policy you can either access cash or a "short term policy loan" to help smooth out unexpected cash flow needs.
No one ever mentions the low cost, ease and flexibility of taking out a Whole Life Insurance Policy Loan.
So it's no wonder that unless you already have Whole Life Insurance in place, you would even know that this type of credit is available. Many of us are only familiar with the death benefits this policy will provide.
II - Leverage a portion of your savings and create a larger pool of funds to help pay for Long-Term Care - "LTC".
Creating separate funding designated for your LTC will allow you not to have to dig into your brokerage, savings and retirement accounts.
LTC planning is all about doing everything you can do to insure that you’ll have the cash flow to be able to live life to its fullest.
How can LTC Insurance (LTCi) help you better manage your cash flow?
The LTCi pool of benefits you'll have available grow tax free
2. An optional inflation protection rider allows your initial policy's benefits to further grow yearly, by:
* 3% Compound or
* 4% Compound or
* 5% Compound
3. You may be able to deduct/credit your yearly premiums in your tax returns:
resulting in lowering the yearly cost of your premiums
talk to your accountant
4. When you start receiving qualified monthly benefits you may have a choice of:
cash or
reimbursements of your monthly bills you've paid
5. Your qualified LTCi monthly benefits will be tax free
LTCi with a highly rated Insurance Company will give you the opportunity to create a separate pool of funds that can help you better manage your cash flow.
One question that is on everyone's mind: "Will my premiums be going up?"
The answer is probably yes.
Think about it; the cost of providing for your LTCi in 20 or 30 years from now will most probably go up and you would want a policy that can continue to manage life's inevitable costs.
The good news is that there is now Premium Rate Stabilization in effect to protect how much your premium may go up.
If an Insurance Company is requesting a premium increase two criteria must be met:
They must first reduce the profit levels in their original pricing and
100 percent of the rate increase must go towards claims and customer service, not profits.
III - Eliminate the fear of depleting your retirement savings by including a Guaranteed Income Annuity in your retirement plan:
There comes a point, when you are looking way into your future, that you just want to know you have set aside monthly cash flow specifically meant to cover monthly recurring bills such as:
housing
utilities
taxes
fuel
food and
health care
A Guaranteed Income Annuity generates a stream of income which is unaffected by financial markets and is guaranteed for life or for a period of time you choose.
When wanting peace of mind that your monthly expenses will be paid I advise my clients to look at Guaranteed Income Annuities and to look at Fixed Index Annuities when they want to take on just a little risk in the financial markets.
Yes, Variable Annuities may produce higher growth, but then again comparing them with above two mentioned Annuities you will have peace of mind that your designated monthly bills will be paid and isn't that what it's all about at that point in your life!
While premiums may be higher, if you choose to purchase an Annuity later in your life, the guaranteed payment streams will be larger.
Once you reach your mid 60's is the time to start reviewing what attractive options are available. You might purchase a Guaranteed Future Income Annuity at age 65 and choose to defer receiving the monthly cash flow starting in ten years.
Or you might wait until reaching ages 70's or early 80's to purchase the Annuity where you choose to receive your benefits immediately and if you were to pass away prematurely the cash flow can continue to your beneficiary.
You can get better at juggling your Cash Flow.
It takes a little forward thinking on your part and
It's making a commitment to plan for a future of more flexibility
By including Insurance in your portfolio's makeup you can hold on to your financial long term strategy in times of market volatility and life's events. The proper Insurance in place won't let your financial planning slip through your fingers.
Click on, below to Paul Sullivan's article I mentioned on top:
Why Inconsistent Income Needs Consistent Planning - Paul Sullivan
Let's find the time to continue this conversation about new financial tools that may help you better juggle your cash flow.
Debra K. Bedell
Insurance - a great Hedge against Risk.